Hertz 2015 Annual Report Download - page 151

Table of Contents
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(2) Represents the increase in amortization of other intangible assets, depreciation of property and equipment and accretion of revalued liabilities relating to
acquisition accounting.
(3) Represents debt-related charges relating to the amortization of deferred debt financing costs and debt discounts and premiums.
(4) Represents expenses incurred under restructuring actions as defined in U.S. GAAP. For further information on restructuring costs, see Note 11
"Restructuring," to the Notes to our consolidated financial statements. Also represents incremental costs incurred directly supporting the Company's business
transformation initiatives. Such costs include transition costs incurred in connection with its business process outsourcing arrangements and incremental
costs incurred to facilitate business process re-engineering initiatives that involve significant organization redesign and extensive operational process
changes. Amounts in 2015 and 2014 also includes consulting costs and legal fees related to the accounting review and investigation, one time costs to
terminate certain marketing and co-branding agreements, and costs associated with the separation of certain executives during the year.
(5) Acquisition related costs and charges during the period.
(6) Primarily represents Dollar Thrifty integration related expenses.
(7) Represents expenses associated with the anticipated HERC spin-off transaction announced in March 2014. In 2015, $26 million were incurred by HERC and
$9 million by Corporate. In 2014, $28 million were incurred by HERC and $11 million by Corporate.
(8) Represents non-recurring costs incurred in connection with the relocation of the Company's corporate headquarters to Estero, Florida that were not included
in restructuring expenses. Such expenses primarily include duplicate facility rent, certain moving expenses, and other costs that are direct and incremental
due to the relocation.
(9) In 2013, represents premiums paid to redeem the Company's 8.50% Former European Fleet Notes.
(10) In 2013, represents extinguishment of debt for Senior Convertible Notes.
(11) In 2015, represents the pre-tax gain on the sale of approximately 138 million shares of CAR Inc. common stock.
(12) In 2015, represents the pre-tax gain on the sale of our HERC France and Spain businesses.
(13) In 2015, primarily comprised of a $40 million write down of the HERC trade name. Also includes a $6 million impairment on the former Dollar Thrifty
headquarters in Tulsa, Oklahoma, a $5 million impairment on a building in the U.S. Car Rental segment, $3 million impairment on a held for sale corporate
asset, and write downs of $3 million associated with U.S. Car Rental service equipment and assets. In 2014, primarily comprised of a $13 million impairment
related to our former corporate headquarters building in New Jersey, a $10 million impairment of HERC revenue earning equipment held for sale and a $10
million impairment of assets related to a contract termination. In 2013, primarily related to a $40 million impairment in the carrying value of the vehicles
subleased to FSNA and its subsidiary, Simply Wheelz.
(14) Includes miscellaneous, non-recurring or non-cash items. For 2015, primarily represents a charge of $23 million recorded in relation to a French road tax
matter. In 2014, primarily comprised of a $19 million litigation settlement received in relation to a class action lawsuit filed against an original equipment
manufacturer. In 2013, primarily represents cash premiums of $12 million associated with the conversion of the Senior Convertible Notes and $5 million of
depreciation expense related to HERC.
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In the third quarter of 2015, the Company identified various misstatements relating to prior period financial statements that it corrected during that
quarter. The cumulative impact of the adjustments on the results for the three months ended September 30, 2015 was a decrease to pre-tax
income of approximately $18 million (of which $13 million relates to years prior to 2015) and a decrease to net earnings of approximately $13
million. The adjustments are comprised of $4 million related to the accounting for the post-acquisition sale of land that was revalued as part of the
December 2005 acquisition of the Company, $4 million of additional accruals for the periods 2009 through 2014 resulting from concession audits at
certain airport locations, a $4 million obligation to a jurisdiction for customer transaction fees, $3 million of additional write-offs of assets that were
incorrectly capitalized and $3 million of other miscellaneous adjustments. The Company considered both quantitative and qualitative factors in
assessing the materiality of the items individually, and in the aggregate, and determined that the misstatements were not material to any prior
quarterly period and not material to the three months ended September 30, 2015.
Provided below is a summary of the quarterly operating results during 2015 and 2014. Amounts are computed independently each quarter. As a
result, the sum of the quarter's amounts may not equal the total amount for the respective year.
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except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.